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The closing of the borders held back foreign buyers but did not weaken the luxury real estate market.

While this absence raised fears of a drop-in sales, there was a surge in flash sales, such as a house with a garden in Neuilly sold in one day at 3.3 million euros. Sales are still present and remain well above the average of about 10,000 euros per square meter, they are approaching more than 15,000 euros per square meter. In addition, when they have exceptional elements such as a beautiful location or outdoor space, prices can rise to 20,000 euros.

To explain this surge, one must understand that confinement has reshaped the desires of buyers. Being confined and experiencing teleworking has made people consider a longer time in the main residence, which makes them want more space. Also, the coronavirus crisis has caused the CAC 40 to collapse by 15%, leading investors to focus on investing in stability, namely real estate. Indeed, this is safe because real estate in Paris is constantly increasing.

Alexander Kraft, president of Sotheby's International Realty France and Monaco, observes an increase of 20% of the sales of its agencies between January and June 2020. An astonishing score whereas the foreign customers cannot reach the capital anymore. But this absence still leaves us to fear a more demanding market. Goods without defects sell very quickly and sometimes more expensive than their estimated value, while goods, even with few defects, take much longer to sell and are subject to negotiations.

Find the complete article here. 

Paris West Sotheby's International Realty, specialist in luxury and prestige real estate in Paris

Dear clients,
Even in these difficult times, we stay by your side!
Although our brokerages in France are forced to close again for the time being, all Sotheby's International Realty ® teams in France and Monaco continue to work and remain at your disposal (by phone, email, SMS and video conference) to assist you with their unrivaled know-how and global resources!
Do not hesitate to contact us: Our local specialists are there to support you with all your luxury real estate needs. Today more than ever, luxury real estate remains a safe haven and an excellent long-term investment!
Take good care of yourself and your loved ones!
Your Paris Ouest Sotheby’s International Realty team